Amazon.com will cut several hundred jobs in its healthcare units, said Amazon Healthcare Services executive Neil Lindsay in a letter to employees on Tuesday.
About 115 positions may be eliminated at One Medical and Amazon Pharmacy, according to Business Insider, the site that first reported the cuts. One source cited by Insider estimated that up to 400 employees could lose their jobs.
Amazon’s leadership wants One Medical to significantly reduce its operating losses and has asked the healthcare company to save an additional $100 million this year, according to the report.
The goal for One Medical is to reduce its fixed operating costs from 41% to 20% of total revenue by 2028, the report stated. It also mentioned that the company plans to reduce the cost of each patient visit to $322 in 2024, down from $372 in 2023.
“We are realigning some resources to help accelerate our efforts,” said Lindsay.
Amazon agreed to acquire One Medical in July 2022, in a deal valued at approximately $3.9 billion, including net debt.
The company began 2024 with a series of layoffs across various units, including Buy with Prime, the audiobooks and podcasts division Audible, and the streaming unit Twitch, according to multiple media reports.